The Abu Dhabi National Oil Company (ADNOC) has informed its customers of a 10% cut in crude oil allocations for October, an industry source familiar has told Reuters.
The cut comes as OPEC member the United Arab Emirates is working to improve its compliance with a global pact to reduce oil supplies. OPEC and non-OPEC producers agreed on May 25th to extend the existing supply curb into 2018.
OPEC oil supply is set to fall by 419,000 barrels per day (bpd) this month, according to an estimate, reflecting plans for lower exports by Saudi Arabia and reductions by other producers.
The 14-member Organization of the Petroleum Exporting Countries has agreed to cut output by about 1.2mn bpd until March 2018 in an effort to reduce inventories and support prices.
Compliance with the deal has been high so far, but OPEC production hit a 2017 peak in July, in part on increased output from Libya and Nigeria, which were exempted from the pact due to production-sapping unrest.
However, top exporter Saudi Arabia has said its exports would drop to 6.6mn bpd this month, almost 1mn bpd below levels a year ago. Data suggests shipments from No 2 exporter Iraq have also fallen this month.
